Fredriksen’s SFL seals newbuild VLCC deal with Landbridge

Fredriksen’s SFL seals newbuild VLCC deal with Landbridge

John Fredriksen’s SFL Corporation has acquired a newbuild 308,000 dwt VLCC from China’s Landbridge Group, and bareboat chartered it back for a period of seven years.

SFL is paying $65m for the vessel, and the seven-year bareboat charter is worth nearly $60m, and includes a purchase obligation at the end of the seven years. Landbridge also has buy back options through the charter after three years.

Landbridge has already secured a three-year sub charter to an oil major.

SFL said it will find the acquisition with a $50m bank debt facility, and net cash flow after debt service during the first three years is estimated to be more than $4m per year.

Ole Hjertaker, CEO of SFL Management, commented: “Amidst the recent market volatility, we see attractive investment opportunities in our core markets. Some of the best investments can be made when the general market is less competitive, and staying focused and able to execute on accretive growth opportunities through the market cycles is a key differentiating factor.

With a versatile toolbox, including time charters, bareboat charters and senior financing structures, SFL can provide prospective customers with competitive tailor made solutions, whilst at the same time creating shareholder value on the back of our strong balance sheet and our unique access to attractively priced capital.”

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.

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1 Comment

  1. Avatar
    Ivan
    May 21, 2020 at 10:26 pm

    So SFL managers wait for the economy to become anemic, to suck blood. And when the rales start, they stop sucking so they can continue sucking later.